Notorious YouTube influencer, Logan Paul, is moving to Puerto Rico.
During an episode of his podcast, Impaulsive, Paul announced the move after stating that he has “been craving a change.” He claims that he was doing what many others are doing after being bit by the bug that was “biting all the other people leaving Los Angeles.”
He has decided on Dorado, the location he visited in early February, which he has described as “heaven on earth.” He also stated that his move is because he feels that “In Puerto Rico you are motivated to do more and make more money because of the implications that come with that.”
Paul was discussing this with his two co-hosts, and one chimed in asking if one of the reasons is due to taxes, which Paul confirmed by saying “it is 96% of the reasons, which is the same amount of money that you keep each year if you live in Puerto Rico.” The 4% tax bracket is definitely alluring but, Paul is a bit incorrect on how it works.
Once Paul is settled in, he is in for a huge shock because while compared to the lower 48 states, sure, the taxes are lower. But, and this is a huge but, according to Forbes, you are still legally liable to pay taxes on all assets accumulated prior to the move to the island. That’s a 37% federal rate plus, since Paul is from California, an additional 13%. The tax perks are only applicable to income accrued after you become a citizen of Puerto Rico, and for at least the next decade, Paul will be paying taxes on his estimated $19 million dollars in assets that he accrued prior. Any real estate sales, however, even if made after the 10 year move, will still be subject to the lower 48 tax brackets.
Not sure who to wish luck to, but Puerto Rico, we’re sorry!